Pakistan approves compensation as rescue ends 10 days after deadly Karachi plaza fire

Rescue and emergency team members gather at the entrance, following a massive fire that broke out in the Gul Plaza Shopping Mall in Karachi, Pakistan, January 23, 2026. (Reuters/File)
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Updated 27 January 2026
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Pakistan approves compensation as rescue ends 10 days after deadly Karachi plaza fire

  • 73 people killed in one of Karachi’s deadliest fires, which exposed gaps in fire safety enforcement
  • Forensic teams to inspect sealed Gul Plaza building to determine cause of blaze, officials say

ISLAMABAD: The Sindh cabinet on Tuesday approved a major compensation and rehabilitation package for victims of a fire at a shopping plaza in Karachi, as authorities formally concluded search and rescue operations more than 10 days after one of the city’s deadliest commercial blazes.

The fire, which broke out on Jan. 17 at the multi-story shopping complex in Karachi’s congested Saddar area, killed more than 70 people and took three days to extinguish. Rescue and relief efforts continued for over a week amid unstable debris and severely damaged structures, before the scorched building was sealed by the district administration on Tuesday.

Under the cabinet-approved package, families of those who died will receive Rs10 million ($35,800) each in compensation, while affected shopkeepers will be provided interest-free loans of Rs10 million per unit, with the provincial government bearing the cost of interest. An additional Rs500,000 ($1,790) per shopkeeper has been approved as immediate subsistence support.

“There can be no compromise on human life,” Chief Minister Syed Murad Ali Shah said during a cabinet meeting, adding that the government’s priority was to support affected families while ensuring accountability.

“Relief, justice and prevention must go hand in hand,” he added.

The cabinet also constituted a high-level subcommittee, headed by the chief minister, to review the findings of an inquiry committee tasked with determining responsibility for the incident and recommending further action.

Meanwhile, the district administration said rescue operations had officially ended and the Gul Plaza building had been sealed after being declared unsafe and dilapidated. 

“Gul Plaza has been sealed after the search was completed today [Jan.27], following 10 days of operation. Experts from the Lahore Forensic Laboratory and the Pakistan Engineering Council (PEC) will inspect the building. They will share the cause of the fire once the structure’s inspection is completed,” Javed Nabi Khoso, Deputy Commissioner of District South, where the plaza is located, told Arab News.

Dr. Summaiya, police surgeon in Karachi, told Arab News 73 sets of remains had been processed so far, of which 27 had been identified and one unknown profile had been generated. 

“Fifty-six family reference samples have been collected in connection with 65 missing persons,” she added. 

Fires have become an increasingly frequent occurrence in Karachi, a megacity of more than 20 million people, where fire services remain severely overstretched and under-resourced relative to population density and the scale of commercial activity.

Successive deadly incidents have drawn criticism of the provincial Sindh administration over lax enforcement of building codes, inadequate inspections and limited emergency response capacity.
 


Pakistan commerce body calls for ‘energy emergency’ to shield economy from Middle East conflict

Updated 09 March 2026
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Pakistan commerce body calls for ‘energy emergency’ to shield economy from Middle East conflict

  • US-Israeli strikes on Iran and Tehran’s counter-attacks have pushed global oil prices higher and disrupted key energy supply routes
  • Pakistan’s government says it is monitoring the situation and all decisions will be taken to provide all possible stability to economy

KARACHI: Pakistan’s leading commerce body on Monday urged the government to declare an “energy emergency” to shield the country’s economy from an intensifying conflict between the United States, Israel and Iran.

The US-Israeli strikes on Iran and Tehran’s counterattacks on commercial and US interests in several Gulf countries have pushed global oil prices higher and disrupted key energy supply routes, including the Strait of Hormuz, which supplies roughly 20 percent of the world’s oil and gas consumption.

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) said the regionally uncompetitive petroleum prices, already raised by an exorbitant Rs55 ($0.20) per liter last week, and the continuity of key policy rate at 10.5 percent will cause Pakistan’s cost of doing business to soar to unsustainable levels.

FPCCI President Atif Ikram Sheikh urged the federal government to declare an immediate energy emergency and implement reliable contingency measures to insulate Pakistan’s fragile economic recovery and its exports from the severe fallout of the ongoing conflict in the Middle East.

“While the current 28-day petroleum reserve offers a brief buffer, it is insufficient for an extended regional conflict. We are exposed to a severe economic shock if tensions persist,” he said in a statement.

“Coordinated action between policymakers, regulators and the business community is indispensable right now.”

Shekh noted that war-risk classifications have driven marine insurance premiums drastically higher, while freight costs on major shipping routes have spiked by up to 300 percent, with daily LNG freight rates jumping by more than 40 percent.

“Supply chain delays on the back of rerouting shipments away from the Gulf is projected to add 15 to 20 days to transit times for Pakistani exports heading to key markets in the European Union, the UK and the United States,” he said.

Sheikh’s statement came as Pakistan’s government deliberated measures to conserve fuel as the Middle East conflict intensified, with no signs of either side letting up. Islamabad has also sought Saudi Arabia’s help in securing oil supplies through the Red Sea route as the Strait of Hormuz remains closed for trade.

Pakistan’s Petroleum Minister Ali Pervaiz Malik said three oil shipments are expected to reach Pakistan on Monday, state media reported, as Islamabad grapples with a potential fuel shortage and the impact of surging oil prices worldwide.

The federal government has warned petrol pumps against hoarding and profiteering in the wake of Gulf tensions and is establishing a joint dashboard with provinces to monitor fuel reserves and hoarding at gas stations.

“The government is constantly monitoring the situation and all necessary decisions will be taken to provide all possible stability to the national economy,” Prime Minister Shehbaz Sharif said at a review meeting on Sunday.